§ 5.66 - Dividends payable in property other than cash.

§ 5.66 Dividends payable in property other than cash.

Cross Reference

Link to an amendment published at 85 FR 80469, Dec. 11, 2020.

In addition to cash dividends, directors of a national bank may declare dividends payable in property, with the approval of the OCC. A national bank shall must submit a request for prior approval of a noncash dividend to the appropriate OCC licensing office. Even though the property distributed has been previously charged down or written off entirely, the The dividend is equivalent to a cash dividend in an amount equal to the actual current value of the property, regardless of whether the book value is higher or lower under GAAP. Before the dividend is declared, the bank should show the excess of the difference between actual value over and book value on the books of the national bank as a recovery, gain or loss, as applicable, and the dividend should then be declared in the amount of the full book value (equivalent to the actual current value ) of the property being distributed.

[61 85 FR 6036380469, NovDec. 27, 1996, as amended at 82 FR 8104, Jan. 23, 201711, 2020]